Bill Overview
Title: Small Business Set Aside Extension Act of 2022
Description: This bill permits small businesses to extend their participation in the 8(a) Business Development program by one year.
Sponsors: Rep. Carter, Troy [D-LA-2]
Target Audience
Population: small business owners
Estimated Size: 20000
- Small businesses are a significant component of the economic landscape across the globe, creating jobs and contributing to GDP.
- Each year, thousands of small businesses enter the 8(a) Business Development program in the United States for various forms of support, such as business development assistance.
- The bill specifically addresses small businesses in the United States that are part of or are eligible for the 8(a) Business Development program, which is designed to assist small, disadvantaged businesses.
Reasoning
- Small businesses are pivotal for economic growth and job creation in the U.S., and supporting them can have widespread positive effects.
- The 8(a) Business Development program is specifically tailored to support small, disadvantaged businesses, providing critical resources and assistance.
- With a limited budget, not all businesses eligible for the 8(a) program can benefit from this policy, thus the impact might be unequal across the target population.
- The policy could help stabilize businesses facing difficulties due to external economic factors, enhancing their growth potential over an additional year.
- The small business sector is diverse, with varied needs and different levels of reliance on the 8(a) program's benefits.
Simulated Interviews
Small Business Owner (Atlanta, GA)
Age: 45 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 1.0 years
Commonness: 12/20
Statement of Opinion:
- The extension gives us some breathing room to solidify our operations and expand clientele.
- This could help stabilize our finances, especially after the pandemic.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 9 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 8 | 6 |
Small Business Owner (Denver, CO)
Age: 39 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 15/20
Statement of Opinion:
- While beneficial, this policy doesn't apply to us anymore.
- The 8(a) program was a boost early on, so an extension would have been helpful back then.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 7 | 7 |
Small Business Owner (Miami, FL)
Age: 50 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 1.5 years
Commonness: 10/20
Statement of Opinion:
- This extension could be a lifeline during competitive downturns.
- More time in the program equals more growth opportunities.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 8 | 6 |
| Year 5 | 9 | 6 |
| Year 10 | 9 | 7 |
| Year 20 | 8 | 5 |
Small Business Owner (Houston, TX)
Age: 34 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 1.0 years
Commonness: 13/20
Statement of Opinion:
- The extension is timely and relevant given current economic conditions.
- It offers a chance to better prepare before fully exiting the program.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 8 | 6 |
Entrepreneur (Los Angeles, CA)
Age: 58 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 5/20
Statement of Opinion:
- Great for businesses in need, but won't directly impact my operations.
- Alignment with specific sectors might influence overall market competition.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Small Business Consultant (New York, NY)
Age: 28 | Gender: other
Wellbeing Before Policy: 7
Duration of Impact: 0.5 years
Commonness: 14/20
Statement of Opinion:
- The extension may lead to a surge in demand for consulting services.
- This is a promising development for the market of small business services.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 7 | 7 |
Small Business Owner (Chicago, IL)
Age: 47 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 1.0 years
Commonness: 8/20
Statement of Opinion:
- This extension allows us to plan long-term improvements.
- The additional support is crucial in transitioning to a competitive marketplace.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 8 | 5 |
| Year 5 | 9 | 6 |
| Year 10 | 9 | 6 |
| Year 20 | 8 | 5 |
Small Business Owner (Portland, OR)
Age: 31 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 1.2 years
Commonness: 11/20
Statement of Opinion:
- Beneficial to businesses just starting in the 8(a) program like mine, though initially the impact might be limited.
- Provides a crucial timeframe to adjust strategies.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 9 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 8 | 7 |
Small Business Owner (Philadelphia, PA)
Age: 42 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 1.3 years
Commonness: 10/20
Statement of Opinion:
- The timing of this policy couldn't be better for us.
- We anticipate utilizing the extra time to significantly grow our client base.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 9 | 7 |
| Year 5 | 9 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 9 | 6 |
Economic Analyst (Boston, MA)
Age: 55 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 0.7 years
Commonness: 6/20
Statement of Opinion:
- The policy may enhance economic resilience among small, disadvantaged businesses.
- Long-term effects should be closely monitored to ensure equitable benefits.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 9 | 8 |
| Year 3 | 9 | 8 |
| Year 5 | 9 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Cost Estimates
Year 1: $5000000 (Low: $4000000, High: $6000000)
Year 2: $0 (Low: $0, High: $0)
Year 3: $0 (Low: $0, High: $0)
Year 5: $0 (Low: $0, High: $0)
Year 10: $0 (Low: $0, High: $0)
Year 100: $0 (Low: $0, High: $0)
Key Considerations
- The administrative cost related to extending the program is a key financial factor.
- Potential longer-term economic benefits include increased productivity and competitiveness of small businesses.
- The bill affects a specific and relatively small target population, leading to concentrated impacts.